Shares of the Arrival (ARVL) stock declined in the premarket following the announcement of third-quarter 2021 financial results. ARVL stock price saw a downtrend of 20.16% to drop at $14.20 a share at the time of this writing. The stock was green in the previous trade and went up by 6.53% at closing. Let’s discuss more about this stock.
Arrival stock is engaged in the designing and distribution of electric vehicle vans and buses across the globe. The stock has a current market value of $11.037 billion and a 1,582,996 average trading volume.
Third Quarter 2021 Financial Results:
- Arrival stock suffered a loss of €26 million in the third quarter of 2021 as compared to a €22 million loss in the same period of the previous year.
- The adjusted EBITDA loss of the ARVL stock for the reported quarter was €40 million, higher than €18 million in the same tenure of the previous year.
- ARVL stock spent €38 million in administrative expenses and €9 million in non-capitalized R&D expenses in the third quarter of 2021. This compares to €20 million administrative expenses and €1 million non-capitalized R&D expenses in the same period of the previous year.
- Capital expenses jumped from €21 million in the third quarter of 2020 to €81 million in the third quarter of 2021.
- By the end of the third quarter of 2021, ARVL stock had €381 million in cash and cash equivalents.
Business Developments of ARVL stock:
- Installation of Rock Hill station has been started and is expected to complete by the end of this year along with Bicester which is expected to end by the end of the first quarter of 2022.
- ARVL stock has installed Bicester technology cells to build Vans for product validation and manufactured 1,400 composite panels through production equipment in Bicester.
- ARVL stock did announce the Arrival Service Network Program by using its in-house digital service platform. The technicians get certifications through this program to service Arrival’s vehicles.
- Intending to achieve a net-zero carbon position by 2040, ARVL stock has joined the Climate Pledge. This will help Arrival to fulfill Paris Agreement goals 10 years early. The company is now devising a plan to achieve these goals as soon as possible.
- In connection with the collaboration of Arrival with Uber, the company anticipates the first prototype of the car by the end of this year.
Wrap Up:
It seems that investors did not like the financial results of the ARVL stock as sentiment is negative so far I the stock market. The stock has gained almost 18% in the last month however, it lost approximately 33% year to date.
